Illinois Spreads Widen as Risk-Shy Investors Exploit Liquidity
- 10-year spread hovers around level last seen 11 months ago
- Illinois index had worst loss among largest states in February
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Illinois, the worst-rated U.S. state, is seeing its penalty in the bond market jump to the highest in nearly a year in the current risk-off environment.
The debt penalty for the state’s bonds over benchmark securities is at the highest since April. The rising spreads came as investors pulled about $8 billion from muni funds this year.